Meme stocks is where it’s at today. Investors have booked some pretty impressive returns holding on to “stonks.” Indeed, Express (NYSE:EXPR) and EXPR stock are great examples of what’s going on in the markets today.
Today, shares of EXPR stock are up more than 10% at the time of writing on higher-than-average volume as retail investors seem eager to pick up the pace of buying with these stocks.
Here are two key reasons why EXPR stock is outperforming today.
Broader Interest in WSB Plays Surging
It appears the mainstream media, and Wall Street, have an opinion on stocks like Express.
Interestingly, a former portfolio manager at a Goldman Sachs (NYSE:GS) hedge fund, Will Meade, has dropped his take on EXPR stock. Amid the hype in January, such takes took Express on a wild ride, as non-WSB traders appeared to want to pile in on the action.
Initially, Express was viewed as having interesting potential of fitting the criteria of a short-squeeze opportunity. The company had a relatively high short interest level compared to the public float. There was also a lot of negative sentiment in the stock at the time.
These factors appear to still be in place today. Accordingly, retail investors, and simply those seeking to ride their coattails, have piled into this trade in recent days.
EXPR Stock Viewed As a Great Reopening Play
There’s actually a pretty interesting value argument that could be made for owning EXPR stock, and its retail peers, right now.
Indeed, the pandemic has done a great deal of damage to any company operating in retail. EXPR stock is still way, way down from its previous peaks nearly a decade ago. The retail landscape has altered in recent years, and the pandemic has forced companies to adapt or be punished.
However, renewed sentiment that we’ll all hit the malls soon has been a key driver of EXPR stock and its peers. It appears investors are willing to put their money to work in these beaten-up value names right now, regardless of the hype that surrounds these stocks.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.